1. Field of the Invention
The present invention relates generally to a data processing system. More specifically, aspects of the present invention provide for a method, computer program product and data processing system for automating a purchase assembly conversion process to support a dynamic configure-to-order production operation.
2. Description of the Related Art
There is a rising tide of hardware personalization occurring in the supply chain in order to maximize the throughput of suppliers and minimize the costs to procure parts. At the same time, the supply chain has seen decreasing cycle times, as demanded by the customers, with an order book that consistently changes with spikes in demand, changes in order configurations, and product cancellations. The changes in the order books can occur nearly continuously throughout each production day. Generally, the higher the level of configuration offered for a product, the more variability and opportunity for changes in the order demand. Under current supply chain dynamics, there is little time to react to the demand changes in the standard, traditional fashion that is, ordering more parts.
In an effort to minimize the amount of assembly and test work to be added, companies structure and purchase several variations of the same assembly. These variations of the basic assembly system—sometimes called “vanilla” systems—become starting points in the company's order fulfillment process. However, in order to decrease production time and testing, the basic assembly systems include as much hardware as is practically possible.
Typically, a configure-to-order supply chain uses demand reports that drive the manufacturing team to personalize these low-level assemblies with specific parts. As the order demand shifts, the supply chain commonly reacts by purchasing additional low-level assemblies for personalization. The purchasing of additional low-level assemblies increases inventory-carrying costs and impacts cycle time. Generally, the time required to procure and pull additional low-level assemblies is longer than the time required to re-personalize an existing low-level assembly already in inventory.
While basic assembly systems can be procured at a lower assembly level, such a solution to the supply discrepancies is not optimal. Systems at a lower assembly level require additional downstream assembly and testing time by the manufacturer. Suppliers are not able to perform work and testing that might be possible in a higher-level assembly. Thus, the manufacturer must spend more time not only assembling the final product, but also in testing the product after assembly.
A materials replenishing plan or materials requirements plan (MRP) system is used to identify the low-level assemblies demand, as well as to identify the necessary quantity of each low-level assembly, based on current orders. A major challenge is that MRPs generally run weekly or, at best, nightly. In contrast, demand for a particular generic or personalized part can shift throughout the course of a single business day. Additionally, MRP output does not provide instruction on what or when to re-personalize certain inventory in order to make up for shortages in other inventory. This type of logical decision can only be made at the manufacturing assembly level in real time.
Unfortunately, order load often does not match the materials replenishing plan. Excesses of some of the basic assembly parts and shortages of others are inevitable. In order to satisfy customer orders on schedule, it becomes necessary to either procure more of the basic assemblies, or convert nonconforming in-inventory basic assemblies into conforming basic assemblies.